Personal Christian Credit Rating
A personal Christian credit rating can affect an individual's entire life, from being able to buy a bicycle, a motorcycle, rent an apartment, rent a car, buy a house, start a business or get the money to go on a cruise. In the American economy, a borrowing history rating is the standard by which a person is judged to be trustworthy and honorable. Since the passing of the handshake and a person's word as being the standard bearer of integrity for borrowing, selling and promising, today's world of business judges a person on the cold hard numbers of their FICO scores or borrowing history rating. There are three major credit bureaus in the country, and each one issues a borrowing history score based on slightly different kinds of interpretation of the same borrowing information. The borrowing history reports issued by Experian, TransUnion and Equifax are the benchmarks for all decisions made about a person's borrowing worthiness.
Making a lot of money does not raise a personal credit rating necessarily unless the extra money is used to keep payments on time or accounts low. It's possible for a millionaire who doesn't pay on time to have a lower borrowing history score than the person who makes forty thousand a year and is a staunch on time bill payer. There are a number of factors that go into a credit rating that really begin with how on time a person has been with bill paying. Are there times when a bill when unpaid for more than thirty days or sixty days or ninety? Each one of those late payments begins to subtract from the premier score of eight hundred and fifty. Additionally, how much a person owes is also factored into a borrower's personal credit rating as well as how long a person has used borrowed money, how often a person has applied for loan money and what types of loans a person uses.
The federal government has mandated that each person with a social security number can get a personal credit rating history report once a year from one of the three major credit bureaus. Upon receiving one of these reports, an individual can look to see if there are mistakes on the report that might hurt a borrowing history score. The report might show closed accounts that should have been still been open. There may be other glaring mistakes that need attention. But there is one shortcoming with getting a yearly borrowing history report: each time a person requests his own history, it will lower the score slightly. And surprisingly, a borrowing history report does not have a FICO score attached.
The term FICO, the interchangeable acronym for a personal credit rating or credit score stands for the Fair Isaac Company. This company first developed the formula used for crafting a borrowing history score. Since the financial upheaval that began in 2007 and continues into the later part of 2008, the Fair Isaacs Company has announced a few tweaks in its formula. For example, instead of hurting a person's borrowing history score, applying for new accounts may actually boost one's numbers. Also, having high balances on cards could hurt more and actively using those accounts that are open can also be more important in actually raising the personal credit rating. Additionally, Fair Isaac says it wants to see people use more than one kind of borrowed loan which means seeing both revolving borrowed money use and installment borrowed money use, which will then raise the FICO score as long as the payments continue to be on time. Jesus has always made it clear in his earthly ministry that one of the marks that delineate His followers is obedience, such as "My sheep hear my voice and I know them and they follow me." (John 10:27)
Improving a person's personal credit rating is a process that cannot happen overnight. In fact, slow pays can remain on a person's borrowing history for seven years. So while improvements in a score can take place month after month, mistakes and past errors in judgment don't go away with a whisk of the wand. The bottom line in improving a borrowing history is to stop using loans and begin paring down the balances that have been accrued. Additionally, keeping older accounts open and in good standing are a good idea while closing them can actually hurt a score in some instances. Finally, opening accounts that are not intended to be used, such a department store plastic card account to get an extra ten percent off a purchase can also hurt a person's personal credit rating.
A FICO score can range from three hundred to eight hundred and fifty, with most people falling into the middle six hundred fifty range. A score of seven hundred and twenty or higher ought to be the goal of most consumers, experts advise. When all the formulae are erased and a person needs to know how to improve his own borrowed money rating or FICO, the simplest word to employ is wisdom. Perhaps a second word might be restraint and the third word would be knowledge. Raising a FICO score means that wisdom must be used when handling the privilege of borrowing money. Restraint must be used to reign in the temptation to use each card to its allowable ceiling and thirdly, knowledge is needed to know how borrowing history scores are created and that takes homework on the part of a wise loan user.
Christian Credit Repair SecretCredit repair secrets can be found through one of the many agencies that help borrowers manage poor financial decisions of their past. Working with the agency opens up the opportunity to change and improve a consumer's credit score. They can assist consumers with learning where to seek help, what to look for, and how loans can become helpful instead of further damaging credit ratings. Many companies exist, and some are more effective than others. Knowing where to seek and find help for changing damaging information is a valuable tool and can lead to finding out credit repair secrets. Many different places exist that will allow the consumer to improve his report. One well-known and sometimes over-used credit repair secret is the ability to file a dispute against an agency or company. Yet most individuals do not understand the proper way to file a dispute letter or address issues that should not remain on the consumer's record.
Finding answers and understanding what to look for is a great credit repair secret. The federal government has created various regulations and laws that companies must abide by. By knowing what rights the consumer has versus the regulations of the agencies, the consumer has the ability to use these regulations to address problems that may be affecting rates and scores. A company can provide information on government rights for the individual and restrictions placed on reporting bureaus. Debt consolidation or personal loans make it possible to pay off current debt. However, the consumer is usually assigned higher interest rates on personal loans and debt consolidation, and that can sometimes cause the total cost to add up. By receiving information on credit repair secrets from experts in the field, the consumer can determine which will be most suitable for his needs.
By helping to find a solvent strategy in changing financial habits, a credit repair secret can increase a person's ability to make the difference over less amount of time. Choosing the most appropriate strategy to repair the report will take research and time on the part of the consumer and the agency involved. But none of us can succeed in changing bad spending habits unless we depend on the Lord. Following God, seeking Him for answers, and understanding His commandments are important ways to live debt free. The Old Testament commands us, "Ye shall walk after the LORD your God, and fear him, and keep his commandments, and obey his voice, and ye shall serve him, and cleave unto him" (Deuteronomy 13:4). No credit repair secrets can give us the insight and strength that He does in all areas of our financial affairs.
Credit repair advice can come in a variety of forms for a person wishing to gain a plethora of knowledge on how to improve their financial report and score, in order to get better offers when it comes to lending. A credit repair advisor can be family, friends, lawyers, or some other type of financial professional. In fact, there are many organizations in existence that will offer free counsel for those that are interested in receiving additional help to increase their score and lower the amount of their debt. Most people with higher debt balances enlist in the help of some kind of financial counselor.
Financial guidance can be used in many ways; to prevent debt, to get out of debt, and to stay out of debt. When using credit repair advice to prevent debt, it is important that an individual realize the difference between using their credit options a healthy way, and taking advantage of lending offered to them. Many people are offered the opportunity to apply for debt in every store they frequent. The cashier's job, in some cases, is to sign up as many potential store accounts as possible. A credit repair advisor will teach an individual when to apply for lending, and when not to. Most retail store cards contain very high interest rates, which anyone should steer clear from.
Counselors will also teach that an individual should apply for no more than 4 lending types per year. Some types are necessary, the purchase of a home, for example. This type of lending actually improves a score. It is listed on the financial report as a real estate loan, and the home itself serves as security for loan repayment. Credit repair advice will always consist of using the item purchased with credit to serve as security for the loan. This allows the borrower to hold minimum risk. A credit repair advisor will offer the debtor alternative options for receiving money to purchase items or services.
If a Christian person still wants to use lending, the type is important. Credit repair advice will often suggest that a home equity loan or some other installment personal loan be taken out instead of opening multiple revolving card accounts. Installment accounts show favorable on a report. The repair advisor may even suggest than an installment loan be used immediately to pay off all revolving debt. One of the most effective ways to raise a score in as little as 30 days is to pay down the balances on all cards to at least 20% of their limits. A credit repair advisor will often recommend this approach for a quick rise in scores for multiple purposes. Their recommendations are very important to listen to so debtors should be humble and take their instruction to heart. "The fear of the LORD is the instruction of wisdom; and before honour is humility" (Proverbs 15:33).